The Indian stock market is near new highs (see India ETF=INP) and several Indian stocks are attractive. Some that are especially strong are TTM, INFY, IGTE and CTSH.
However, I tend to gravitate to IPO stocks as many of the biggest moves come from newer offerings. One that caught my eye with a beautiful high tight flag (HTF) set up was Makemytrip.com (MMYT). First, I should point out that MMYT is a thinner stock so caution is needed. MMYT is in the #1 Industry Group right now in the "Leisure-Travel". It is a group mate of PCLN which is obviously one of the strongest stocks in this new uptrend.
MMYT provided several positives in my eye. First, it has strong fundamentals with a 3 year sale's growth of 42% and last quarter sales growth of 45%. Second, the RS line is at a new high at 97. Third, it is a recent IPO and experiencing strong early accumulation. Fourth, it is in the market strongest industry group. Lastly, it provided an entry opportunity with a HTF set up.
I had a buy stop in at $36.29 in the event I wasn't able to see the breakout. Fortunately, MMYT was trading up in premarket on good volume and sort of "showed it's hand" which gave me the chance to hit it early around $35.80 at the open on 9/9/10. Typically, on the breakout you'd like to see 100+% volume. Prior to breaking out, volume had fizzled to 200K shares a day or less. On the breakout day it traded over 1.2MM shares which showed that hopefully institutional investors were snapping up shares. MMYT began trading on 8/12/10 with an IPO price of $14.00. It ran to $36.19 in 5 trading days (+157%). There was a brief 20% correction phase on much lower volume. Ideally, the breakout will produce a new phase with much higher prices. However.....only time will tell if this can make one of those monster stock type runs.
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